SpaceX files for $55 billion semiconductor fab in rural Texas for Musk's Terafab — total chipmaking fab investment could reach $119 billion

SpaceX has filed for a property tax abatement in Grimes County, Texas, for a semiconductor fab that could cost up to $119 billion, far exceeding the initial $20 billion estimate for Musk's Terafab project. The facility is planned to be a vertically integrated semiconductor manufacturing and computing fabrication site located northeast of Austin. The filing marks SpaceX's first formal step towards establishing a production facility, with the site being a former coal-fired power station area acquired by Charah Solutions in 2021. The project's estimated cost would make it one of the largest single semiconductor investments proposed, potentially rivaling TSMC's planned investments in Arizona. Residents have expressed concerns over the lack of communication from county officials about the project, and a public hearing is scheduled for June 3 to consider the abatement agreement.